Home > Food, Nutrition & Animal Feed > Encapsulated Flavors and Fragrances Market
Encapsulated Flavors and Fragrances Market Size By Product (Flavor blends, Fragrance blends, Essential oils & natural extracts, Aroma chemicals), By Technology (Physical process[ Atomization{Spray drying, Spray chilling, Spray disk}, Extrusion, Fluid bed technique, Others], Chemical & Physicochemical Process), By Encapsulation process (Micro Encapsulation, Nano Encapsulation, Hybrid Technology, Macro Encapsulation), By End-use (Food & beverages [Beverages{Hot drinks, Powder soft drinks, Others}, Pressed tablet, Chewing gum, Bake mixes, Others], Toiletries & cleaners), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032
- Report ID: GMI1520
- Published Date: Feb 2023
- Report Format: PDF
Industry Drivers
Encapsulated Flavors and Fragrances Market size worth USD 8 billion in 2022 and is projected to record over 4.5% CAGR from 2023 to 2032.
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The increasing retail sales across developed and developing economies driven by a robust surge in population, rising disposable incomes, and living standards will complement the industry. Over the last decade, the retail sector has registered sizeable growth helped by higher spending on consumer goods, food, and other essentials. For instance, the Retailers Association of India (RAI) reported a 15% rise in retail sales in October 2022 from 2021. The worldwide expansion of the retail sector will have a positive influence on the industry.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 8 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 4.7% |
| 2032 Value Projection: | USD 12 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 751 |
| Tables, Charts & Figures: | 1,037 |
| Segments covered: | Product, Technology, Encapsulation process, End-use and Region |
| Growth Drivers: | |
| Pitfalls & Challenges: |
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High cost of encapsulation technologies to restrain industry growth
The escalating costs associated with encapsulation processes and technologies may impede the encapsulated flavors and fragrances market outlook to some extent. Encapsulation procedures, from developing the microcapsules to the equipment used for optimum processing conditions are expensive and need to be adjusted for economic convenience. Moreover, the availability of affordable alternatives to coating and membrane formulation for specific characteristics may limit the demand for encapsulated flavors and fragrances. However, the increasing consumption of functional foods for improving the overall health will offer lucrative business prospects for the application of innovative, microencapsulated flavors, vitamins, and nutraceuticals.
Increasing focus on the production of inventive flavor blends through AI-based sensory analysis to fuel the industry growth
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The encapsulated flavors and fragrances market valuation from flavor blends segment is estimated to reach USD 4.8 billion by 2032. Flavor blends are expected to witness a surge in demand from food and beverage manufacturers propelled by the increasing consumer inclination towards healthy dietary lifestyles. The rising consumption of seasonal and spicy foods has further accelerated the demand for savory flavor blends across the food industry. Moreover, the recent advancements in processing technologies have enabled the development of customized flavor blends to address the specific requirements of customers. Thus, manufacturers are rapidly integrating advanced liquid and gas chromatography equipment by integrating next-generation tools, such as predictive modeling and AI to create flavor blends with higher consumer appeal.
Rising demand for nano encapsulated flavors in plant-based food products to drive the industry trends
| Process | Market Share, 2022 (%) |
|---|---|
| Micro Encapsulation | 41.7% |
| Nano Encapsulation | 31.2% |
| Hybrid Technology | 20.1% |
| Macro Encapsulation | 7% |
| Total | 100% |
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Encapsulated flavors and fragrances market size from the non-encapsulation process segment is anticipated to exhibit a 4.5% CAGR during the forecast timeline. The nano-encapsulation process has emerged as a promising strategy for biological packaging in several bio-availability methods. The growing emphasis on bioactive compounds for the development of functional foods will propel the production of flavors and aromas using nano-encapsulation. This technique offers numerous benefits in the field of food technology, including better food processing, pathogen detection, prolongation of shelf life, and intelligent packaging. Furthermore, the growing preference for plant-based foods is expected to proliferate the nanoencapsulation of food components to enhance bioaccessibility, targeted release, and digestion.
Surging demand for spray-dry flavors in food manufacturing to foster the industry outlook
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In terms of revenue, the physical process technology segment is set to exceed USD 10.5 billion by 2032, ascribing to its high production capacity, greater economic feasibility, feedstock versatility, and particle size flexibility. Spray dryers are extensively used to encapsulate a wide variety of flavorings suitable for use in high-temperature manufacturing environments. Some of the commonly applied physicomechanical techniques for encapsulation include extrusion, spray-drying, freeze-drying, and fluid bed coating. Food and beverage companies are increasingly deploy spray-dry flavors as they help withstand intensive production stages without compromising original sensorial properties and increase the shelf life of end-products.
Robust for encapsulated flavors in food & beverage sector to influence the market outlook
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Encapsulated flavors and fragrances market valuation from the food and beverage sector is expected to exceed USD 7 billion by 2032. The surging demand for flavorings and additives across the food and beverage sector can be attributed to the changing consumer dietary habits and taste preferences. Additionally, the rising penchant for diversity has encouraged manufacturers to develop customized flavors specific to consumer needs. The production and consumption of processed foods has also lately increased substantially worldwide. According to the Directorate General of Commercial Intelligence and Statistics (DGCI&S), the overall export of agricultural and processed food products increased from more than USD 11 billion in April-September 2021 to over USD 13 billion in the same period in 2022.
Ultra-processed food consumption to drive the market revenue in North America
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The North America encapsulated flavors and fragrances market size is predicted to register a 4.5% CAGR through 2032, owing to the robust presence of leading F&B manufacturers that address the burgeoning demand for ready-to-eat and ready-to-cook meals, canned soups, and snacks. The increasing consumer interest in continental cuisines and the optimum spending on luxury restaurants is proliferating the demand for authentic and exotic flavor blends in developed countries, such as the U.S. Furthermore, fast-paced lifestyles and hectic schedules have led to higher dependence on ultra-processed foods. For instance, in May 2022, Northeastern University’s Network Science Institute released data indicating that ultra-processed food accounts for more than 70% of the food supply in the U.S.
Strategic expansion initiatives to boost industry outlook
Some of the leading companies in the encapsulated flavors and fragrances market include Buchi Labortechnik AG, Aveka Inc, Cargill, Fona International Inc, Firmenich SA, Clextral, Etosha Pan (India), Flavarom International Limited, Glatt GmbH, Frieslandcampina Kievit Gmbh, Ingredion, Lycored, and Insta Foods. These companies are focusing on expanding their geographic footprint for better customer reach. For instance, in January 2022, Buchi Labortechnik AG announced the launch of its new branch in Taipei to expand its business presence across Taiwan.
Impact of the COVID-19 crisis on encapsulated flavors and fragrances market
The COVID-19 pandemic had a significant impact on encapsulated flavors and fragrances industry dynamics. While the lockdown restrictions hampered the production of food and food ingredients worldwide, the growing concerns associated with infection and hospitalization fueled consumer interest in the consumption of nutraceuticals. In the wake of the pandemic, encapsulated flavors emerged as a promising tool to fight against the virus and prevent infection. It also led to a series of R&D activities emphasizing the benefits of encapsulated foods such as the controlled release of functional compounds, high stability, bioavailability, and enhanced antimicrobial & antioxidant activity. Hence, an optimum preference for nutrient-rich fortified food products supplemented the rising demand for encapsulated flavors and additives during the pandemic.
This encapsulated flavors and fragrances market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD Million from 2018 to 2032 for the following segments:
Market, By Product
- Flavor Blends
- Fragrance Blends
- Essential Oils & Natural Extracts
- Aroma Chemicals
Market, By Technology
- Physical Process
- Atomization
- Spray Drying
- Spray Chilling
- Spray disk
- Extrusion
- Fluid bed technique
- Atomization
- Chemical & Physicochemical Process
Market, By Encapsulation Process
- Micro Encapsulation
- Nano Encapsulation
- Hybrid Technology
- Macro Encapsulation
Market, By End-use
- Food & Beverages
- Beverage Mixes
- Hot Drinks
- Powder Soft drinks
- Pressed Tablets
- Chewing Gum
- Bake Mixes
- Beverage Mixes
- Toiletries & Cleaners
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Malaysia
- Thailand
- Indonesia
- Australia
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa